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Business News/ Companies / News/  Will new aviation policy change the way we fly?
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Will new aviation policy change the way we fly?

The blueprint aims to make flying cheaper, but customers are wary of hidden costs and long check-in queues

Long queues for security checks and packed waiting areas, especially at the Delhi airport, are a common grouse among air travellers. Photo: Sunil Saxena/HTPremium
Long queues for security checks and packed waiting areas, especially at the Delhi airport, are a common grouse among air travellers. Photo: Sunil Saxena/HT

New Delhi: The immediate reaction to the new civil aviation policy rolled out in June was almost entirely positive. From private carriers to industry experts, there was near-unanimous consensus that this was a forward-looking policy—and, although implementation would be the key, the groundwork had been laid for far-reaching aviation reforms.

With the initial euphoria having worn off, it is perhaps a good time to critically look at how a lot of these new amendments would actually play out—and how they would affect stakeholders, including passengers.

The cornerstones of the new policy are to enhance regional connectivity, boost ease of travel and promote healthy competition among airlines.

To promote competition, the government, in what has arguably been the biggest talking point of the new policy, replaced the contentious 5/20 rule with a 0/20 rule. What that means is simple: for an airline to be eligible to fly to international destinations, it needs to have a fleet of 20 aircraft; the clause that requires an airline to have five years of domestic experience has been done away with.

An airline that is expected to significantly benefit from this relaxation is Vistara, a joint venture between Tata Sons Ltd and Singapore Airlines Ltd.

Vistara’s chief executive officer Phee Teik Yeoh said that although he had been hoping the 5/20 rule would be entirely abolished, he was glad the rule had been relaxed.

“Now, there is clarity. The number of years spent servicing the domestic market is no longer a factor that determines an airline’s ability to fly international. The restrictive 5/20 rule has made way for a more liberal 0/20 rule and we hope this is a first step in the unconditional removal of this rule," he wrote in an email response.

“Relaxation in international flying norms will not only benefit new airlines like us but all Indian airlines. It would result in additional capacity of aircraft being inducted within India by all airlines including Vistara in order to move this incoming tra-ffic within the country," he said.

India’s geographical location means it can become a global aviation hub, according to Yeoh.

“It is important to allow Indian carriers to take traffic to and from hubs within India in order to strengthen both Indian aviation and Indian airlines. This will create long-term and sustainable growth for the industry," he added.

Competition among airlines is also expected to usher in new and innovative technologies and more efficient on-board services, which have already started to see innovations with new entities entering the market.

For instance, Vistara has announced that it plans to install BAE Systems’ “IntelliCabin" in-flight entertainment system by next year, which would let customers stream pre-loaded content on their personal electronic device through a wireless system.

The Regional Connectivity Scheme (RCS) is another important highlight of the policy and is in line with the government’s agenda of getting more and more cities connected and making flying affordable for the middle class.

The rationale is simple: if every Indian from the middle class takes just one flight a year, it would result in a sale of 350 million tickets—a big jump from the 80 million domestic tickets sold in 2015.

Set to profit from the RCS are towns such as Jhansi, Shimla, Gaya, Agra, Allahabad, Pantnagar, Kullu, Tezpur and Jamnagar—important towns commercially and historically, as also for tourism, but with very limited air connectivity, forcing people to travel considerable distances by rail or road.

The new policy also talks about coordination between various authorities such as the National Highways Authority of India (NHAI), Indian Railways and Metro rail to create an integrated infrastructure platform for more efficient connectivity, especially in the remote regions.

“Creating a multi-modal connectivity has been a continuous thing. Delhi is already well connected and likewise Chennai and Lucknow are nearing completion as well," said V.P. Agarwal, a former chairman of the Airports Authority of India.

Additionally, the Helicopter Emergency Medical Scheme (HEMS) proposed in the policy seeks to achieve coordination among different infrastructure authorities as well as insurance companies and hospitals.

The scheme involves providing immediate and a high standard of care to the injured person right at the place of accident. Doctors will be trained and equipped to provide anaesthesia and pre-hospital care. The policy doesn’t talk about how the scheme will work out though.

“It’s a very good idea and NHAI would definitely like to work on it. It would be for the first time in the country that such a service would be available on the national highways," said NHAI chairman Raghav Chandra.

The new civil aviation policy also charts out changes in ground-handling guidelines. As per the original policy of 2007, no airline could carry out ground handling, which was to be the responsibility of a subsidiary or joint venture of Air India with other ground handlers appointed by the airport operator in both the terminal and the ramp.

In 2010, the policy was tweaked to allow ground handling by private domestic carriers. The new policy of 2016 further relaxes the original rule by permitting ground handling in both the ramp and the terminal by private airlines with its own employees or regular employees of a subsidiary.

The total value of the ground-handling business is estimated to be around 2,600 crore a year, said a senior Air India official, who didn’t want to be named. This new rule, according to the official, would reduce business by around 1,000 crore.

The new rule also states that hiring of employees for ground handling through a third-party manpower supplier would not be permitted anymore. “This will render thousands of people jobless, so agencies supplying manpower have formed a group to file a petition in the court and obtain a stay with regard to this rule," the official said.

The current policy also dedicates one entire section to air cargo. It talks about air cargo’s importance in the e-commerce industry and also its high employment potential.

But how much would all of these changes benefit the customer? Even more importantly, perhaps, does the new policy even address the customer’s grievances?

Long queues for security checks and packed waiting areas, particularly at Terminal 1D of Delhi airport, are a common grouse among travellers.

“Even during rush hours, not all check-in kiosks are open and moreover the lines for ladies are huge because they don’t have enough of them," said Aparna Jain, a leadership coach and author. Jain also said single female travellers often confront uncomfortable questions at immigration counters. “They (immigration officers) need serious training on sensitivity and what not to say," she added.

Another grievance is the lack of handy emergency medical services and a standard operating procedure in case of medical emergencies at airports.

A Delhi-based doctor, who didn’t want to be named, recalled a harrowing experience she had at the Delhi airport in April. “I slipped and had a head injury and multiple bruises on my knees and right arm as well. There was a big hematoma on the forehead with a cut leading to blood loss. I had severe headache, and feared an intracranial bleed. It took one hour to get a qualified doctor," she said.

According to the doctor, it took her three hours before she could finally get out of the airport after having her immigration and customs procedures reversed.

The 15kg baggage limit of airlines is another common grouse. “(It) is laughable. It is a hassle and headache for most travellers. What makes this worse is the ferocity with which airlines enforce the limits. Just a kilo over and you will have to pay the excess baggage charge. Even if you try and adjust and reallocate between check-in bags and hand luggage, they make it harder by forcing you to take your check-in bag through the X-ray machine again, especially in airports where the X-ray procedure is before check-in, like Chennai and Kolkata," said Rakesh Mani, a business consultant.

ALSO READ | The next wave in regional aviation

“How can airlines aim to compete with trains on price when there are so many hidden costs to flying?" asked Mani.

Arijit Purkayastha, a Tezpur, Assam-based businessman, expressed similar concerns.

“I often travel to Kolkata for work. The new RCS does seem like it will make flying cheaper, but there are so many hidden costs, particularly this daylight robbery by airlines for extra baggage, so I don’t know if it will really help," said Purkayastha.

Another common customer problem is the time-consuming baggage collection process at the time of arrival, particularly during peak hours—which the new ground-handling reforms will hopefully help resolve.

According to Sudhakara Reddy, founder and national president of Air Passengers Association of India, the limited connectivity issue will automatically be resolved once the new policy directive is implemented.

Reddy, however, has a word of caution. “You must appreciate the fact that the new policy has not even become law and is in the process of being implemented. It will take between six and 24 months to even implement some of the issues mentioned in the policy," he said.

Will the new civil aviation policy change the Indian customer’s flying experience forever? Well, going by customer grievances, that will take a lot of time. The policy does deserve credit for making all the right noises.

This is second of a three-part series. Next: Will foreign airlines fly into India?

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Published: 09 Aug 2016, 02:34 AM IST
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